Govt working to issue energy bonds for tech upgradation in industry: NEECA chief Experts call for shifting to green cement for emission reduction

Govt working to issue energy bonds for tech upgradation in industry: NEECA chief
Experts call for shifting to green cement for emission reduction
ISLAMABAD (February 3, 2023):  The government is contemplating to release energy saving certificates and energy conservation bonds to encourage technological upgradation in the industries, said Dr Sardar Mohazzam, the Managing Director of National Energy Efficiency and Conservation Authority (NEECA) here while speaking at a  public-private dialogue.
The dialogue on “Decarbonizing Pakistan Cement Sector: Pathways to lever net zero targets” was organized by Sustainable Development Policy Institute (SDPI) under the auspice of its Network for Clean Energy Transition in Pakistan: Research and Advocacy.
Dr Mohazzam further said that the cement sector holds immense potential for decarbonization and energy efficiency and “we must analyze and take inspiration from policy initiatives being implemented in India and China.”
He reiterated that energy security is a top priority for the government, but pricing remains a pertinent challenge in the uptake of renewables and decarbonization of hard to abate sectors.
He further said that a designated consumer regime equipped with benchmarks and energy audits to catalyze uptake of renewables and emission reduction from industrial sector is in the pipeline and will soon set the right regulatory direction for the sector.
Talha Khan, Executive Director, Pakistan Environment Trust (PET) said that the carrot and stick approach will not work, as the government has not announced any tax incentives for cement sector. He added that the insignificant foreign investment is not enough to bridge the financing gap needed for the decarbonization of the sector.
Syed Fawad Hussain Shah, Senior Assistant Manager, Center for Industrial & Building Energy Audits, (CIBEA) said that energy use by the Pakistan’s cement sector generates 45% emissions, which is much higher than global average. He elucidated that high carbon intensity of the sector can be traced to 85% coal consumption while share of biomass and waste-to-energy is merely 0.02%. He stressed the need for improving public awareness regarding green cement and updating Building Code of Pakistan to influence the sector to shift from grey to green cement, which is eco-friendly.
Farrukh Ahmad, Head of Environment, Bestway Cement, said that globally, the cement  sector is sitting back on the issue of decarbonization and will take some years to realize why is it important to  make significant reduction in CO2 emissions. He further said that amidst financially testing times, the pressure on industrial sector for emission reduction in the absence of tax exemptions and incentives is rather an utopian thinking. He called for the simplification of regulatory environment and incentives to promote growth in the sector.
Dr Sajid Amin Javed, Deputy Executive Director (Research), SDPI, in his welcome remarks, said that significant emission reduction can be made possible by adopting innovative technologies of carbon capture and storage, which is a big challenge in Pakistan.
Deepak Krishnan, Associate Director, World Resource Institute (WRI) urged the governments and international institutions to facilitate emissions reduction by lowering the cost of technology and equipment and improving access to finance for industries. He stressed on developing practical and adoptable interventions that must be baked into planning from the start.
Mahmoud Abouelnaga, Solutions Fellow, Center for Climate and Energy Solutions (C2ES), United States asked the civil society and research organizations to play their role in harmonizing the lifecycle analysis of cement sector to design effective policy interventions for decarbonization in consultation with stakeholders.
Ubaid ur Rehman Zia, SDPI’s Senior Research Associate, expressed the hope that the measures recently announced by the Industrial sector will lead to maximum emissions reduction of 9%, which is significantly lower than the target required to meet 1.5 or 2-degree scenario of the Paris Agreement. He further highlighted that for Pakistan’s Industrial sector to reach net-zero by 2050, the cement sector has to reduce its emissions by at least 53% by 2030.